Interview with Dongdong Run Fang Zhe: How to create low-cost and high-efficiency O2O logistics

(Original title: Interview with Dongdong Run Fang Zhe: How to Build a Low-Cost and Efficient O2O Logistics System)

Text/Li Zhi

Founded in September 2014, Dongdong Express is a comprehensive service platform that aims to meet the daily needs of white-collar workers, promising delivery within 30 minutes and starting from 1 yuan, without charging additional delivery fees. Dongdong initially took snacks as the entry point, and later expanded the scope of goods to the field of office daily necessities such as data lines and manuscript paper.

In an interview with NetEase Technology reporter, founder Fang Zhe said that the Dongdong Run WeChat public platform currently has a total of about 200,000 user fans, and the repurchase rate is high. Fang Zhe said that "only fast is not broken, only the truth is not abandoned, only knowledge is not sluggish" is the core value concept of Dongdong Run.

Only fast is not broken: low-cost and efficient logistics system

Dongdong Express promises to deliver the goods to the user within 30 minutes from the time the order is placed, and the average delivery time of this process is only 14 minutes.

Fang Zhe introduced that Dongdong adopts the form of a combination of distribution detachment and support detachment for rapid delivery. The distribution points are set up on the front line, and the support detachment is like an "aerial refueling tanker", forming a mobile warehouse. Dongdong uses data to judge, analyze and predict the supply of goods, and replenishes the distribution detachment in real time through mobile support vehicles. The support detachment covers the three points with the strongest demand, and in the process of continuous flow, the distance from the office buildings is controlled within two to three kilometers, and the support team personnel will also go to the front line for distribution during special events.

Fang Zhe said that before the distribution business covers a region, the team members will optimize the design of the best route in the area. "Each delivery man wears a watch in his hand, press it at the beginning, press it when he arrives. Including the time of waiting for elevators in different office buildings, we will do on-site calculations in advance. ”

"The elite team must be an executive team that works on the front line." Fang Zhe said.

Only the truth does not give up: emotional premium value-added trust agent

Fang Zhe introduced that since its establishment in September 2014, Dongdong has accumulated 200,000 user fans, and about 80,000 users have purchased on the WeChat platform, with a high repurchase rate.

He believes that under the steel cage, urban white-collar workers are in a relatively imprisoned non-free state, so they need to relieve and regulate the outside world. "We have a lot of offline activities, such as guessing boxing with white-collar workers, the other party can get a bottle of Coke if they win; asking users to guess which hand has a paper ball on April Fool's Day, and then unexpectedly telling him that there is a prize for guessing wrongly; and also sending users hand warmers intimately during the transition period when the temperature has plummeted and the heating has not yet arrived."

Through continuous multi-frequency offline activities such as mini-games, consumers have not only paid for the ordinary use value of a piece of bread and a carton of milk, but the emotional premium brought by goods and services will make them pay more attention. Dongdong creates a sense of scene and experience in another space for users in a boring and boring daily environment, so that its sticky demand for products can be maintained.

In addition to cash on delivery, Dongdong also launched a commodity recharge card, which completes the final process in the form of manual accounting and SMS notification. "Consumers trust us, and that's very touching." Dongdong establishes a warm connection with users through a relationship of trust, and carefully manages trust, rather than consuming trust, which is the key to Dongdong's continuous acquisition of users.

Only know not to slacken: know oneself and know the other to select a rational model

Dongdong has conducted a survey and analysis of consumer needs, and has in-depth insight into the needs of users in different regions, and at the same time, it also has a clear and clear division and positioning of its own service area, the variety of goods sold, and the choice of online platform.

"At first, the variety of goods was mainly snacks, from 300 to more than 800, but after data analysis, it was found that the 300 varieties that really sold well were sifted back." And with a two-week turnaround time, 10% of the goods are updated. "From experimentation to regression, while reducing inventory costs, it also further improves the efficiency of distribution of goods."

Through research and research, it was found that regional differences also lead to differentiated consumer needs. Fang Zhe gave an example: "The characteristics of Shangdi are that there are many technical otaku, and the orders are mainly instant noodles and cigarettes. Dongdong understands the needs of users in specific areas, "We provide specific services for specific times, specific places, and specific groups of people, which is also the goal set by Dongdong Express at the beginning of its establishment." ”

Since its inception, Dongdong Express currently only covers the six core areas of Beijing Dawanglu, Wangjing, Dongdaqiao, Financial Street, Zhongguancun and Shangdi. Always maintain rational restraint, do not blindly expand, test the feasibility of the model, but also for the next step of development to accumulate momentum. According to Fang Zhe, in the future, Dongdong will expand its business scope, add more service areas in Beijing, and will also consider opening branches in first-tier cities such as Shanghai and Guangzhou.

Whether it is snacks or office supplies, all the goods in Dongdong are standardized products. For why not include fresh and other non-standard goods into their sales scope, Fang Zhe said that such goods have strict requirements for time, and it is difficult to adjust, and many uncontrollable external factors make Dongdong invest all its energy on standardized products, "We only do business with gaps, when you squeeze all the gaps, the cost will increase indefinitely, and it is impossible to achieve this goal." Fang Zhe analyzed.

Dongdong Express uses the WeChat platform to obtain customer traffic sources, contrary to the launch of independent apps by other products, Fang Zhe has a sober bystander attitude and said that he will not get involved in this project. He believes that the living space of the app is small, and it is not as high as the user's dependence on WeChat.

In addition to arriving within 30 minutes after placing an order, Dongdong Express has insisted on "one yuan delivery" since its inception, and does not charge additional delivery fees, and the price is lower than that of street convenience stores, but it has maintained a month-on-month growth rate of 10%-20%. Fang Zhe revealed that Dongdong's gross profit margin is more than 30% on average, which is enough to amortize costs. The average number of orders per day is 2,000 (excluding group purchases that connect with enterprises), and the unit price of customers has also increased from the initial 13.2 yuan to 23 yuan this year, with a target of 30 yuan. Dongdong also provides errands for consumer goods such as Starbucks, charging a 3 yuan errands fee. In addition, Dongdong cooperates with many manufacturers to carry out spike activities for specific products on the official account platform. "Merchants value our marketing capabilities, and these products are actually provided to us for free. In the future, we will also consider cooperating with different markets such as automobiles and beauty, so as to attract more customers. ”

Speaking of the original intention of the business, Fang Zhe said that the FMCG white-collar platform has not received much attention before, so it intends to take instant FMCG as the guide, establish contact with white-collar workers by meeting their daily basic needs, and adopt a team model with old and new. Fang Zhe revealed that at present, Dongdong has completed the Pre-A round of financing, with a valuation of over 100 million, but it is very cautious when introducing investment to avoid being forced to expand.

Source of this article: NetEase Technology Report Responsible Editor: Guo Hao _NT5629

NetEase Enterprise Informatization Professional Solution qiye.163yeah.com

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